“Should I sell my house if I am relocating?”
Are you relocating or moving, and trying to figure out what your options are with your house? This is a common issue that many people face. Sometimes it is for a job opportunity, and other times it is a necessary evil to relocate. Either way, we have put together a list of options you have to either keep or sell your house to help you make the best decision.
Take control of the situation by learning what your options are in this blog from the Brilliant Day Homes Team!
Options For Keeping a House When Relocating
Keeping a house is sometimes an option depending on your unique situation. There are several different options you have in order for you to be able to keep your house. Keeping the house will have additional costs that go with it, and also more headaches, but it may make sense for you. Here are some options:
1. Rent Out The House
One option would be to turn the house into a rental property and become a landlord. Here are a couple of things to consider:
Does the house cash flow?
If you are planning to keep a house as a rental property, it is important to determine if the house will cash flow. Look at the PITI (principal, interest, taxes, and insurance), then factor in the cost of property management, vacancy, capital expenses (major systems like a replacement of HVAC, New Roof, etc.) and general repairs (broken fan, a clogged toilet, etc). If you can rent the house for more money than all of these monthly expenses, it might be a good option.
Is the neighborhood good for a rental?
Some houses won’t be in ideal areas to use for a long term rental. Poor schools, flood zones, and high crime rates are a handful of factors to consider that will lead to more repair costs and vacancies that result in headaches as a landlord.
Do you have experience as a landlord?
If you don’t have the experience you need to be cautious as there are laws you need to follow and there will be expenses with maintaining a house. Do you have someone to do maintenance? Do you have someone to do showings of the house when it is vacant? Also, tenants can cause you a lot of headaches.
2. Do A Short-Term Rental
You could keep the house as a short term rental. This would be something like AirBNB or VRBO. Each of these provides an option that could bring in money for the house and allow you to hold onto it. A short term rental is much different from a standard rental because it works more similar to a hotel.
Is the house in an area people want to vacation to?
If you have a house in a unique location that is in a resort town or gets a lot of tourists, a short term rental can work out great! Or, if it is near a sporting arena, you could also use it for visiting fans that want to come into town to check out a sports game.
Are there any restrictions that prevent short-term rentals?
While it is okay for many houses to be used as a short term rental, there is a lot that has restrictions on them. Make sure to check your local HOA or any ordinances that may not allow a short-term rental. The last thing you want is for your rental to be shut down on you.
Do you have a property manager or local host?
It must be noted that this method REQUIRES an active Host or property manager. As mentioned earlier, this is much more like running a hotel than renting a house. You will need someone to make sure that the house is cleaned, nothing is broken. You will need to find a person or company to make sure to manage your rental, or you will get lots of negative reviews which can lead to getting no bookings.
3. Let A Family Member Stay In The House
Another option would be to see if a friend or family member could stay in the house. This would be similar to renting the house out, except that you actually know the person and vouch for them, unlike a stranger.
Can they pay enough for you to break even on expenses?
You could also charge them just enough money to break even on the house payments. This way even though you aren’t making any money directly, you aren’t holding onto a money pit.
Is it worth risking damage to the relationship?
The downside here is if they cause damage or problems with the house, it could lead to bad blood or the loss of a friendship. Even good relationships can be strained when money is involved, and a house is usually the most expensive thing a person will ever own.
4. Leave The House Empty
This one might sound crazy, but this is an option if you really love your house, and could move back at some point the in the future.
Do you have a smart thermostat?
Leaving a house to the elements is a fast way to let it deteriorate, so you want to make sure you still have it not get too hot, cold or humid for extended periods of time. You don’t want to waste a lot of money on utilities, so get a smart thermostat so that you don’t leave the house climate completely unregulated.
Do you have a security system?
Spend a few hundred dollars to get a home security system so that you know it is protected in the event someone breaks in. Not only will this help deter criminals, but will also help give you peace of mind with leaving your house empty.
Do you have someone to check on the house?
Even with today’s technology it is still best to have “boots on the ground”. Find someone your trust to just pop in and check on the house every few weeks. Make sure the roof isn’t leaking or bugs haven’t infested it.
Just remember you will still be paying for property taxes, insurance, mortgage and utilities so this could turn into a major liability. If you don’t ever plan on returning to this house to live this is not a great option.
5. Keep It As A Vacation Home
Just like the above and leaving the house empty, you could keep it as a vacation home. Unlike a short-term rental, you wouldn’t be managing a bunch of strangers in the house but would have it set up for just you and your family.
Is the house somewhere you would want to visit regularly, or vacation to?
It is important to determine is this a place that you would want to vacation to. If the house has no value to you as a nice vacation spot, don’t even consider this option.
Can you afford the expense?
Like leaving the house empty, this could get really expensive. If you think this is will be even a little bit of a stretch keeping the house, it probably isn’t worth it.
Options For Selling A House When Relocating
1. Sell It On The Market
Selling the house on the market is a common method to try first for many people who are relocating. It is a great option especially if you have time to get things together. If your company is having you relocate, ask them for relocation assistance. Many companies will offer
Does the house need to be cleaned and repaired?
The first thing you should do is prepare the house for listing. Make all the necessary repairs or renovations to get it market ready.
Do you know how much the house is worth?
To do this you can contact a reputable real estate agent or connect with us and we can give you a no-cost no obligation valuation on your property. Once you know what the house may be able to sell for in the current market… that sets the basis for how long you may or may not be able/willing to sell the house.
Make sure to understand the selling costs that go along with selling your house on the market.
Do you have a good agent?
Get the ball rolling early so you don’t waste any time. Every month that you wait or every month that it takes to sell the house… costs you money. Just make sure that they are experienced, and have good reviews/recommendations. There are a lot of realtors that aren’t very good that could end up costing you.
Do you have time to wait?
It takes an average of 3-6 months to sell a house on the market. If that isn’t an issue, then listing the house on the market is a good option.
2. Sell It To A Home Buying Company
Another option is to sell the house quickly for cash. Working with a reputable home buying company can take a lot of the stress away if you are having to relocate. At Brilliant Day Homes we pay all cash and can close in as little as 2 weeks. Many people opt for an option like this just so that they don’t have to deal with months of back and forth negotiation when selling a house.
If you need to sell your house due to relocating, reach out to use for a free no obligation offer.